Deprecation at Delta Airlines and Singapore Air Lines

Deprecation at Delta Airlines and Singapore Air lines dispraise helps mate the expense of using long lived assets with the revenues the assets helped to produce> what means is that Delta ns Singapore end Air line depreciates ane of its piece of cakeplanes, it is trying to match the greet of carry flight to the revenue that air craft helped to produce. Because air crafts can be an item used for more than one income statement period, Delta and Singapore Airlines dont spy the air crafts integral cost as an expense immediately. Instead, the companies record them as assets on the balance sheet. Then, in each year of the assets useful life, the companies should recognize a portion of the heads costs as an expense. At the end of the useful life of located assets the businesses will dispose, and each amount received from disposal will represent its balance value. This may be difficult to count in practice. How ever, an estimate has to be made. If it is unlikely to be significant amount, a balance value of zero will be assumed. The cost of fixed assets less its estimated residual value represents the total amount to be depreciated over its estimated useful life.

Delta Air Line ItemPrior to July 1, 1986July 1, 1986-march 31, 1993April 1, 1993- present orderStraight lineStraight lineStraight line difference Value10%10% 5% Useful life history10years 15years20 years Depreciation expense per $ snow of gross air craft value( annually)$100 x 0.1 = $10 $100-$10 = $90 $90/10yrs= $9 per yr$100 x 0.1 = $10 $100-$10 = $90 $90/15yrs= $6 per yr$100 x 0.1 = $10 $100-$10 = $90 $90/20yrs= $4.75 per yr Singapore ItemPrior to July 1, 1989April 1, 1989- present MethodStraight lineStraight line remnant Value10% 20% Useful Life8years 10years Depreciation expense per $100 of gross air craft value( annually)$100 x 0.1 = $10 $100-$10 = $90 $90/8yrs= $11.25per yr$100 x 0.2 = $20 $100-$20 = $80 $90/10yrs= $8 per yr The amount... If you want to get a full essay, order it on our website: Ordercustompaper.com

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